Committee formed to represent overseas investor interest in collapsed Gold Coast lender LM Investment Management

A dozen financial advisory firms from North Asia, Hong Kong, South East Asia, Europe and the Middle East have joined forces to create an advisory committee to represent the interests of clients who invested around $400 million in funds tied to collapsed Gold Coast mortgage lender LM Investment Management (LMIM).

The committee has appointed Australian law firm Holman Webb and legal adviser Gordian Gaeta, to act on behalf of investors, reported London-based online journal, International Advisor.

LMIM collapsed in March this year.

Investments in mortgage funds were promoted by an international network of financial advisers.

Prior to its collapse, LMIM boasted that it operated in 70 countries and managed $3 billion of realisable assets, including the now-stalled $1 billion Maddison Estates residential development on the Gold Coast.

After the closure of many mortgage funds in Australia spooked local investors, LMIM heavily promoted its offerings offshore, particularly to investors in Asia, Europe and the Middle East.

The Adviser Committee for Investors (ACI) has been created by advisory firms, Magellan, based in Japan and Financial Partners, based in Hong Kong and the UAE.

A further 10 other firms have joined the committee, with each new member has been asked to contribute $3,000 towards legal costs.

A charter has been drafted and distributed to potential new financial advisory firm members in Europe, Asia and the Middle East.

Representatives from Magellan, Financial Partners and Mondial visited Australia earlier this year on a fact-finding mission and have since compiled a report to be distributed to members of the committee.